warm bodies actually signing up on healthcare.gov. i am guessing the u.s. state attorney general will not take uber is more disruptive. i'm tom keene live from world headquarters in new york. it is thursday, december 5. joining me in scarlet fu and alix steel joins us. but it is time right now for a morning brief. bitcoin morning briefing. overnight china announced it will bar financial institutions from handling bitcoins transactions, a move to rein in the virtual currency after an 89 fold jump in the value. alan greenspan's take on bloomberg tv -- it is a bubble. >> it made quite a splash. >> absolutely. europe, 7:00 a.m., bank of england rate decision and then at 7:45 a.m., ecb rate

decision and economists not forecasting a change. >> mike mckee our chief economic correspondent will be focused on the 8:30 a.m. press conference with mario draghi where there is a lot to talk about. >> including the possibility of a fed tabor here and what it could mean for rates rising in europe as well. a lot of economic data in the u.s.. 7:30 a.m., challenger job lot -- job cuts, then initial jobless claims of gdp and then bloomberg and -- bloomberg consumer convert and then factory orders and then 8:30 a.m. eastern treasury secretary jack lew will outline his 2014 regulatory agenda and discuss wall street reform efforts in the buzz word will be the volcker rule. 950 pages. let's do a 950-page data check. stocks, bonds, currencies, flat-

footed. treasury yield elevated. 2.83%. of two $97.57 a barrel. yields,ds, the -- the the two-year has not moved. gold gets a bit finally today. alix steel, why did gold get a bid? and perhapsering some hedge fund buying coming in and buying a little bit. >> market noise. ok, let's get onto the front page. his scarlet fu. >> before we get to that, i want to highlight some preliminary earnings for joseph a bank, involved in the dog fight with men's wearhouse. joseph a bank reporting third- quarter adjusted earnings of $.51, the high endd of it -- end

of its range. as the two companies continue to battle it out. >> all of their clothes, buy one get free, and the bowties, buy five get one free. but this is not joseph a. bank. a made in america bowtie by looks brothers, they are crowd of it. leonardo dicaprio wore this tie -- this is from the movie. >> he took his cue from you, clearly. let's get to the front page. secretary,reasury will speak on financial regulation and plans to address the big gains in financial reform. think of it as a victory lap but he will make it clear more measures may be needed to -- strengthen the global system. this is as regulators get ready to vote next tuesday, december 10, on the volcker rule. >> any plans to ask congress for more money to enforce new rules. the problem is how do you -- >> is it too strong to say today

is the beginning of 2014 and the major changes for banking? >> they already made a lot of the changes. implementation has already begun. enforcement is the next that. >> and mortgage lending and derivatives -- it does not stop once we get the details. >> 1000 pages -- are you kidding me? 950 pages. have you read it? our second front-page story, apple getting a big boost in china. assigning a long-awaited deal to sell iphones on china mobile network. it is china's biggest phone company with more than 700 million subscribers. according to "the wall street "theal lowe's quote -- wall street journal" of the belated this month. they thought the apple five s and the 5c will be at the same time. >> china wanted to get the so- called 4g technology and they had to wait. >> china mobile in particular,

it has the most subscribers but only 45% of the nations three g users. >> apple need to china mobile. >> cinergy partnership for both of them. >> cinergy partnership. carl icahn has been making waves as well. harvard poll from showing a majority of young people not on board with the president's health care plan. they are not interested in signing up. according to the survey, only 22% of young americans between 18 and funny nine plan to sign up. a third of >> which -- between 18 and 29 plan to sign up. leaked -- >> news that they released it. >> those are the front-page

story. >> we have two wonderful guest hosts. -- betath beta workds, works. chief investment officer. likef these cute spellings tumblr. and we have tim adams. president and chief executive officer -- i can say this -- institute for international finance. he is a former undersecretary for international affairs at the state department and was policy -- policy director for bush- cheney campaign out of the state of kentucky as well. it is an important day. what do you want secretary lew to say? be one of the most complicated years in the history of reg look toward promulgation. not just the u.s., europeans and global regulators that have been

incredibly busy. we will be sitting here a year from now and a very different place. the amount and sweep a regulatory changes. changes we cannot even begin to anticipate. >> to paint a picture. meeting is tim adams herding cats. banker doug flynn is running the shop. there are a lot of people upset with each other. how a part are the europeans and the united states bankers this december? >> we are 500 institutions but not just bankers. a whole bunch of institutions. it is difficult to find consensus on the big issues but also difficult for the regulators. one of the big challenges is likely to a fragmentation, which ultimately cost us the global growth. >> why is the focal role -- volcker rule 950 pages question mark >> identifying each heads

with another transaction -- imagine how many transactions every single day. billions of transactions. being able to tie them together. is it workable? we will see. whatd also we will see happens with china mobile and apple because apple made a big announcement it signed a deal with china mobile. beta workds ceo. john, does this change the game for apple because so many say apple lost his footing when it announced the overpriced 5c? >> i think things do get balance. the 5c is an important unit and the 5s is where a lot of people -- they areime with interested in it. important5c is a very phone for apple to expand and push down android on the bottom end. apple has done an incredible job

of dominating the smartphone space. you can still see it in the numbers. if you look at the products we practically all of our products are mobile products. perhaps in every case android usage is about 30% of ios, and monetization, 90/10. >> in china, will it be an apple dominated world or the local vendors like lenovo? i don't think apple dominated but i think very strong apple position gets opened up because of the partnership. you call it strategic partnership. look what apple and at&t do in the united states? it transforms mobile business and it will do the same. be will the chinese different or will they be aspirational and pay up for the fancy iphone? >> i think aspirational. use of the amazon guys have --

put up a new version of kindle and they ran an ad is saying here is the ipad, here's the candle, the kindle is cheaper and has the pixels. abilitys mastered the of taking technology products and transforming them into livestock products and making us want them like fashion products. people come in and say my thing has more pixels, mine is a little faster, mine is cheaper -- i am not going to win the game. >> surveillance nightmare. john figuring out what to do one. the amazon jerome -- jerodr he would have in my bedroom. thing isazon drone remarkable. about 18 months ago on the internet there was something french people put out of a french post office doing delivery with drones. it was a joke. masterfully laced in the media.

rose --ie >> thanks, charlie rose. >> can we say that on air? "surveillance" first -- major misconduct. motors pulling the chevy brand out of europe. it will stop selling chevys in the region by the end of 2015 and will focus on building theopel brand instead. the brand had little more than one percent of the market. gm says the cost of the move could total as much as $1 billion. southwest is gaining from the american airlines-u.s. airways merger because it along with virgin america will gain slots at new york laguardia airport due to antitrust settlement. they are said to be picking up rights to 34 daily landing and pick up spot at laguardia.

the postal service will expand the same day delivery service to the new york area next week. this same day delivery was rolled out in san francisco last year in an effort to win business from online retailers. lands in new york or disclose indirect with tori filing. u.s. kerry thought -- the -- a scary thought, u.s. postal service with drones. about up, dreamworks ceo growth. dreamworks and asia. this is "bloomberg surveillance ." we are on bloomberg television, streaming on all your digital media. ♪

day for an important

dearborn and ford motor. us andelds will join alan mulally in the 10:00 hour. alan mulally on -- do you think you have to ask? are you heading west? may be a distraction. -- yes, he can take a mustang out to microsoft. >> we've got a lot to cover this morning. i'm scarlet fu along with tom keene and alix steel. dreamworks is behind a lot of hollywood hits including best picture winners like "gladiator" and "a beautiful mind." to jeffrey katzenberg last my. he was asked about the opportunities in the east, and china. >> five years from now, china can be the number one movie market in the world. we are 10 billion in america today, and in five years they will surpass us. they will surpass us in many of

these ways, just on the numbers. >> the numbers are certainly playing a decision into what movies they rollout. otherst dreamworks but hollywood studios. all the movies tend to look alike after a while. workan mulally and his tebowing -- we got aircraft, agriculture, and now creative content. -- tim adams with us. you dealt with this as undersecretary for international affairs. how critical is it for jamie dimon to say we need an international financial system to help jeffrey katzenberg compete to project our product over to china? >> without question. ask ford when you see them today. , theyjor multinationals can drive globally. if you are doing payroll in nigeria, you want jpmorgan there. supply chain development in thailand -- absolutely. the reason banks are complex is because we live in a complex

global economy and they mirror the complexity. whether supply chain or payroll management. >> what china is working very are -- hard at things that people want. when are they going to have their own dreamworks studio irrespective of what we have? movies that we are going to went over here? >> they are working on that certainly. they are playing on their domestic audience and working it up. there is also a funny exchange between josh and jeffrey katzenberg about disruption and then barry diller. take a listen. is just an amazing man. honestly without question, one of the most brilliant people even to this day. i still think he is one of the most amazing and brilliant and inquisitive intellectual mean ba

stards i have ever come across. >> he could not resist using a word, either, to describe. > john borthwick, the mean -- >> what do you think of, when jeffrey katzenberg has difficulty placing barry diller in this? he is big money endorsing something that is disruptive. all of these trends are talking about, whether u.s.-china, film moving to asia, you see the massive tectonic shift of technology that transforms the way all of this happened. in the case of aereo and broadcast tv and netflix -- this has been a banner year for netflix. major producers of content going to netflix. this week we saw google doing something with hbo and "game of thrones." see people going over the top.

happening.g is you are seeing the transition. yes, i can with what he talked about before that the complexity of the old world system will come to, but it is changing. >> you are living this. we talk about it but you are living this word of the moment, disruption. what do you see more disruptive next year in the technology space? through a swap of them. the transition from the desktop to the mobile phone and the tablet and beyond is only just started. if you look at the data which yesterday,d aspirational, what consumers want going into the holiday season. now he even have that apple has become such a strong brand in the new world that they are outpacing dell on desktops in terms of people wanting to buy those products. you see the massive transfer --

transformational devices. speaking of disruption, what about the original disruptor, carl icahn, taking aim at apple once again? we will look at his latest attempt on "bloomberg on bloomberg television, streaming on your tablet, your phone, and bloomberg.com. ♪

>> good morning, everyone. i'm tom keene. top headlines. alix steel. >> vice president joe biden also in china to act responsibly. he says china's new air defense zone has caused apprehend -- apprehension in the region.

the vice president wrapped up a two-day visit to the country and travels next to south korea. super bowl advertising is already sold out. executives at fox saying there was strong demand for the first new york area super bowl. the game usually sells out early january. a30-second spot reportedly sold for millions of dollars each. the rockefeller center christmas tree was lit last night. i was there. it was lovely. it took 45,000 lights to illuminate the 76-foot-high norway spruce. topped off by nine and a half foot-high swell rossi -- swa rowki arts. theour feet higher than tree and scarlet fu's the living room. >> my whole mcmansion thing. >> i didn't see it live because it took too long and i had to go

to bed. >> and they have a whole ceremony. >> singing and all of that stuff. >> miley cyrus? >> i don't know. we have the morning must-read. who hasn't? >> i do. i am looking at carl icahn, a tweet that came out late yesterday. notice, gave a proposal to call a vote to increase by back row gram but level.the $150 billion nonbinding proposal, even if approved by the shareholders next meeting. he has been advocating $150 billion but some saying it could be low -- as low as $50 billion and the only owns about half a percent of apple shares. >> retweeting a little bit. >> you wonder if it is a little olive branch to tim cook. not as aggressive as he can be with other companies. >> the best story is the fact that carl icahn and tim cook try

to set up a conference call and tim cook suggested 5:00 a.m. his time which is 8:00 a.m. your time and carl icahn said it is too early. 1636, according to the oxford english degenerate. come on, carl, speak english. >> i had to look it up. or expressing desire -- praying or expressing desire, precatory. >> we will talk about start up to being disruptive coming up next. ♪

>> good morning, everyone. i'm tom keene. scarlet fu is with me and alix steel as well. correction.e" we were talking about the

lighting of the christmas tree at rockefeller center and we had a tweet coming in that miley cyrus -- >> it was an e-mail from my husband who was paying attention. he said miley cyrus was not there. in case people were worried. no twerking. >> let's look at stocks, bonds, currencies, commodities. equities go nowhere but south of the 16,000 level. toher yields as we go tomorrow's jobs report. we will have complete coverage. oil gets my attention. american oil. $97.61. brent crude is above $112 a barrel. >> a very activist investor flavor to gainers and losers because this fertilizer company has been criticized for a dividend payment but it jumped yesterday by almost 11% after it said it was considering a master limited are to ship. holdings has been tanking.

eddie lampert, who has been running the company, needed a to cut his stake below 50% to meet redemption requests from potential -- from clients. extraordinary startups -- you can start up anything with a complete stranger and make a few bucks on the side. these companies have new business models for old things. that is creating some really big legal battles. >> a big legal battle. disruptive technology and things change. like columbus crossing the atlantic, that was disruptive. uber and the rest are centered on new ways of product delivery that often ignore that law. we have the chief executive orks joins ustaw now on the inconvenient truth that some of these may face. what do you predict it may

happen to these really interesting social experiences? >> specifically the ones tied to physical products? >> tied to physical products and they have to deal with the city, state, and federal regulation. >> tim talked about it earlier, but i think you will see over the next two or three years, you will see governments -- local, federal, international governments or non-u.s. governments, get involved in a coastal -- in a whole slew of technology related things. as it relates to businesses like uber, as they scale up you will have local cities trying to figure out how it relates to their existing franchises an existing fleets. .t will be very uneven i am saying generally government should stand back away from this le atse government's ro this stage, you can't actually discern what the new economy -- >> for example, do you predict

the city of new york will stand shares uber takes market from limos and taxicabs? >> the previous it ministration would have. the new administration, we will see. >> you have stuff and you want to share it and you make money on it. when does regulation makes sense? you had a report yesterday uber brings and $20 million a week. should they be regulated and taxed like a regular taxi commission? number was from leaked documents so it is not confirmed, but it is also a top line revenue number. you have to figure out what their cut is and how it slows down. the $20 million a week is hard to gauge. but the company is clearly making a lot of money and has done extraordinary things. ou and view this as peer to peer sharing, but i also view it ke lifestyle.i a whole generation of people are

leaving college and coming into the job market and they are viewing their world and they are saying, hey, i don't actually need to own the assets my parents owned. i don't necessarily need to own an apartment. i can rent. i know people are moving from place to lace. -- place to place. same thing with uber. and same thing with bitcoin. the economy is being restructured and at this point it is hard to discern exactly what the role of government should be. government risk of overreaching -- look, i was on the stand against iker soft in the antitrust case and it is one of the things in my career that i regret because i think it was an attempt to overreach on technology policy and try to design -- government cannot design technology. >> tim adams, i say this with great respect to your political

contributions to the nation. who makes the decisions? or aicians mr. -- regulator brooklyn saying a taxicab medallion is $1.3 million and uber is cleaning :00 . who makes decisions about government intrusion into these new -- >> sharing economy. something theyd will pay some kind of hotel-like taxes. >> these companies are building a business, smart people and they have to figure out how to relate in the economy. you cannot underestimate the power of the existing economy and all of the money and influence that is in that. i think that keeping as much as technology,the giving it the ability to reshape the economy, before government gets involved. with us.orthwick

let's rip up the script. it has to do with the disruption. tim adams is with us. --is with the iif, international -- institute for international financial bankers. he is also a reader. a wonderful book on jeff bezos. let's get a book review. what did you learn? >> everything he has touched, he changed. publishing, ife- you get into financial services space it is certainly worrying because if regulators turn banks into utilities, if that is the case, it pushes innovation invest somewhere else and he will be a guide to seize it and run with it. >> the two different worlds. is jeff bezos jamie dimon's worst nightmare? >> i would consider anyone in that space willing to take technology and do it in a disruptive way and is not burdened by the regulatory

regimes being put in place has a distinct advantage to change the system. >> putting on your government had for a moment, what should the government do about this or what could the government do about this to make sure there is a level playing field? to technology, in some cases it has been a real game changer bringing people into financial services. using mobile phones to allow individuals to have access to financial services. game changer. two .5 million people in this world and not have access to financial services. technology and change that. regulation should let innovation occur but also allow banks to compete. let's not turn them into utilities. if amazon wants to compete with jamie dimon, let's do it -- >> efrain if it is a start up -- different whether it is a start up versus amazon? >> we ought to let innovation occur. companies havee a really hard time innovating. we spend a lot of time trying to

figure out how a small company can keep innovating. we have seen this year a company in the form of snapchat go from nothing and today it shares more pictures every day than all of these book and all of instagram. >> amazing. see less facebook usage. without question. >> we are seeing the big companies in order to keep up -- you think of the incumbents, whether your clients, the banks, whether the incumbent technology companies having these startups move as fast as they can actually -- >> a special seven-our surveillance with tim adams and john borthwick. brad stone, his book is out there, winner of the -- winner of the prestigious "financial times" award. >> on the cover of "bloomberg businessweek" is how blackberry became a relic. you can download it later today.

this is "bloomberg surveillance " on bloomberg television. ♪

>> good morning, everyone. "bloomberg surveillance." i'm tom keene with scarlet: alix steel. >> european banks might make job

cuts next year. the lenders in the region will cut at least five percent of .rading and advisory the job cuts could be as deep as 15%. european banks have already cut 140,000 jobs in two years. a los angeles gas station owner selling artwork from a graffiti artist at auction. the flower girl is forecast to sell for more than $300,000. the owner said he did not know who the artist was when the artist started painting and later he removed a chunk of the brick wall to preserve the work. what started as a single walkout last year has grown into a national movement. fast food workers and 100 u.s. cities to walk off the job in a call for higher pay. they are looking for wages above $15 an hour and the right to unionize. average pay is nine -- nine and those arer --

your top headlines. >> it really speaks to the debate over inequality. >> absolutely. >> tim adams is with us. are kentucky and have always been proud. $15 an hour in kentucky is not $15 an hour in new york city, is it? >> no, it is different. but it is shocking seeing the percentage of fast food workers relying on food stamps. there is an inequality problem and it has been occurring the last 35 years. i suspect technology and globalization one of the big drivers. it is a challenge. >> how do you respond to your business republicans who say the minimum wage is an evil artifact? >> the markets will determine the wage in different places. the market wage is higher than the minimum and it should different from kentucky to new york. two different locations. >> maybe the states find their own -- >> and cities as well. i believe states and localities figure out what the right local market is what -- looks like. >> now it is time for a single

best chart. >> this is one that fits into our conversation. americans' government-sponsored retirement benefits leave a lot to be decided. >> look at that. >> social security benefits averaged less than 13,000 -- $1300 a month, which does not include disability. it is low in relation to earnings. it replaces just 41% of earnings. the u.s. is in yellow. the u.s. is in 30 first place among 34 oecd countries. the average, 58%. " fromoomberg surveillance amsterdam. >> we have to move there. >> a massive range. it comes as a lot of europe has made a lot of cost cuts to their entitlement benefits as well. still so much higher than the u.s. petera or zack and diamond have done important work

rzag.is -- peter o o >> net present value, underfunded by 4 trillion dollars with pales in comparison to medicare and medicaid with respect to entitlements. sobering you put up a but you have to remember, europe is going to have to dial back a lot of the benefits. they simply can't afford them. >> you see them in the european banks. 2014 for the european banks as a sporting year. >> we will see smaller banks have fewer banks and bank consolidation. >> in the real question is will i ever get social security. >> our generation, we pay into it and expect never to get anything -- >> i don't even know what will happen. >> wait, it is decades away. first look, any photos? >> we will start in the ukraine because protests have continued. going on for days. independence square is what you

are looking at right now in kiev , filled with tense as protesters showed they don't want to back down. you did have the current prime minister coming out and saying he sees all the signs of a coup. we featured this a few days ago. this is getting more serious. >> from the ukraine we will go over to china because heavy smog pollution once again plaguing the chinese -- a chinese city. >> and shanghai as well. >> hong kong. >> i was in china may be about 10 years ago. you went out for a day and came back at you which is covered in soot. in late october they had to shut schools, traffic, close the airports. over 1000le rate of is very dangerous. in say. >> what can and out -- what can technology do to solve this? >> i don't know. i am on the software side of the business.

that is where we spend a lot of time. a solvableto be problem. you think of industrialization. i am english. i grew up in the u.k. talking about london fog when i was a kid. when i was in the united states everybody talked about the fog, but i do not see much because they introduced chimney and pollution control and they got it fixed. so the whole london fog phenomenon was essentially, other than the raincoats, was a myth. it was solved technologically. >> and the cleaning up of l.a. you could not see the mountains outside of pasadena, and there they were. >> something very cute i want to show you. herself was upset when the dog knocked over a two- year-old girl. but it looks like she tripped over her walker. then the dog licks her and she

was very happy and she was all smiley. she did call for her mommy, though. and of course, the christmas tree lighting at the white house will happen friday. "bloomberg surveillance" will be continuing. up next, banking and the volcker rule. ♪

>> and this is "bloomberg surveillance." tom keenet fu, with and alix steel. from the files of bloomberg west -- a set actor bitcoin in china. the central bank banning financial firms from handling bitcoin transactions. they say bitcoin does not have a ofe same legal status other currencies. people can use the currency as long as individual take on the risk themselves. my chris ault beefing up privacy of online communication. it is expanding data encryption to protect customer information. u.s.wing reports of government snooping. microsoft says it wants to make sure governments use legal means as opposed to "brute force" to access customer data. crowded bidding for airway auctions. -- airwave auction.

sprint andcarriers t-mobile are not bidding on the butaves known as h-block phone companies in vermont and wyoming have applied. speeches ofe of the the year. paul volcker speaking at the economic club in new york. he was on fire. he was as well when he wrote the volcker rule, i think was four pages long. now it has become 950 pages. it is now the phone book. it in -- it counts five and federal aid -- agencies. regulators want more regulation. tim adams is former undersecretary for international affairs and now with the institute for international finance. he would like to see possibly a little less or smarter regulation. what will banking be like fourth of july of next year if they have to implementing volcker rule? >> it is not just volcker rule but we have wholesale funding and liquidity rules. a whole bunch of things that

have to happen. we are still in the middle stages of implementation. it is the cumulative effect we don't know. how can any ceo understand the business model year from now if they don't know how the regulations look like. >> if there mandate -- thier mandate, jamie dimon, jpmorgan, it is to return on equity, do you just presume job cuts? >> i want to presume anything but they do have to meet the market test. they have to me cost of capital and have to compete with everyone else on capital. i think these guys want to get back to business with banking and financial remediation and go beyond the regulatory jihad we are seeing and they want to get the business models right. >> will the shadow banking be different in 2014 than in 2007? >> that was an effort to regulate it but it is also where a lot of innovation is occurring. regulators are going after shadow banking as well.

>> you say people want to move on in the industry, yet 3 wall st trade group sued cftc to be back some of the overseas trading guidelines. compliance issues with u.s. and foreign rules. isn't it looking backward rather than ahead? >> we are not a part of it but i think there is an issue about cross-border inconsistency. this fragmentation globally is a real problem. mark carney at the bank of thwart, fsb trying to the effort but regulatory fragmentation is one of the great challenges we will face in 2014. >> are volcker himself said he called it a -- he cultural issue. but change is already begun because we have seen the banks pull back themselves. what do you think wall street culture will look like in five years? more have less leverage, capital, more liquidity, and i think there is a massive culture change going on -- change going on in the boardroom. we are seeing an even more so. the business of banking is changing and changing radically. >> walking this forward a couple

more months, what is the world of liquidity going to look like as the rules come through? a fabulous question because we don't know. most of the experts i talked to say we will have less liquidity, thinner markets, which could be a problem. >> a lot of people say the most important part of the volcker rule depend on how you define things like market making. what does it mean to you? find aneed 1000 pages to definition. just have to work through it in real world settings which will take years to really appreciate how this thing operates. enormous unintended consequence in cost. >> what you and i have kidded about for five years, macro- prudential. france does not agree with the united states. >> there are enormous differences. and somedoes something other country or jurisdiction decides they need to retaliate. >> and no drones to come to the rescue. john borthwick from betaworks, talking about a lack of

regulation. is this greek to you? amazing the difference between your two worlds. it says everything about the moment we are in. >> it certainly does. you touched before on the microsoft story. ince this is the last time think i will be on the show this year, the microsoft story points to the nsa issue. and i still believe that is the biggest tech story of the year. last time i was on we talked a lot about twitter. pre-ipo and now it is trading in the 40's, out of the gate raging. but the nsa story and what i think isught forth going to have far, far reaching impacts. >> we want to have you on the show once more this year. we are doing our new year's eve show midnight at the new york federal reserve. we will have you on. forex report. let's quickly get there. british sterling -- £ would

better than good. i don't have it on their. 1.3589.lar, it is "bloomberg surveillance." ♪

>> this is "bloomberg surveillance." , the volcker 950

rule and this morning volcker rule will forever change american banking. good news for the president. a warm bodies are signing up for health care.gov. ford motor tries to strike magic again. a new mustang. we will speak today to alan mulally and mark fields. dear board wants to party like it is 1964. good morning, everyone. it is "bloomberg surveillance." i'm tom keene live from our world headquarters in new york or the joining me are scarlet fu and alix steel. door.ening the good morning. briefinge an overnight but first some headlines currently crossing. the bank of england is maintaining its benchmark interest rate at half a percent. widely expected. also maintaining the asset purchase plan of 375 billion pounds but there is some news we want to update you on.

china has barred financial institutions from handling the coin transaction. that is the move to rein in the virtual currency after an 89 fold jump in value sparked a huge surge in investor interest. alan greenspan's take on bloomberg tv. it is a bubble. over in europe we have more rate decision coming down the pike at 7:45 a.m., ecb rate decision. economist not forecasting a change. and a lot of data here in the u.s. as well. 7:30 a.m. challenger job cuts. then 8:30 a.m. initial jobless claims, gdp, headed into jobs friday tomorrow. 945 a.m., bloomberg consumer comfort and then factory orders. 8:30 a.m. treasury secretary jack lew what outline his 2014 regulatory agenda, discussing the state of wall street reform effort. the buzzword is volcker rule. there are headlines, saying volcker rule will put in place

tough restrictions on pressing the eu and asia to match financial oversight. >> i would point out, 8:30 a.m. 'sis morning, president draghi press conference at the ecb is a big deal. let's get to company news. >> we start with a setback for bitcoin in china. findountry's central-bank -- banning financial firms from handling bitcoin transactions. it says bitcoin lacks real meaning and does not have the same legal status as other countries. those and china can use the currency as long as individual take on the risk themselves. china mobile moves a step closer to offering the iphone. the world's biggest phone company won state approval for a four g network in the clearing the way for china mobile to eventually offer the iphone in the country. southwest gains from the american airlines-u.s. airways flight-- it will gain

slots according to the terms of the antitrust settlement. southwest and virgin are said to pick up 34 daily landings and takeoffs lot right at laguardia. thatd virgin america -- would be great. >> will they have the terminals or will they set him -- or will they sit on the tarmac? >> i think it has been pretty good recently. laguardia has improved over the last three or four years. >> i do not know if i agree but i am willing to think about it. >> hopefully there is nowhere to go but up for a place like detroit. detroit is back -- when it was -- revealeday yesterday a fund has taken a large stake in general motors. role -- stephanie ruhle spoke with kyle bass. >> i just think the u.s. government has been selling gm for a long time, and i think they are almost out. i think there were prohibitions put on g.m.'s management by the

u.s. treasury making it government motors and now it is about to be general motors again. it is a fascinating time and a catalytic time to be investing on the back of treasury's final sale. i think it will release management to be able to put in and do set of comp plans something shareholder friendly both from a share buyback respecter of and from a dividend perspective. >> jeff and he joined -- stephanie joins us now. will he go when pressing for change? path for investment, significant investment. but i said to him you are getting involved with the gm now that government is out. what about financials? we have seen financials make a big push after they have come out from being under so much government assistance. he is not touching u.s. financials. in europe, he is going short european banks. it is not just getting the

government out of your business means it is a home run. he thinks that time has already passed as far as u.s. banks. there isn't an opportunity there. but for gm, we say a detroit company. matt miller will say they are not in detroit. also positive on argentina. and he is long herbalife. >> hasn't he been betting on the collapse in japan for a long time? >> that is a trade that has not been working. but kyle bass is a guy who has spent a huge amount of time investing, not necessarily trading. he is the first to say this has not necessarily won at this point but he is holding true and not moving off his thesis. regarding japan. >> fed tapering, is he an outlier or just focusing on longer-term? >> he said it will not affect his business. again, he is a long-term investor, not a traitor. when the timing -- whether it is december -- it is not in his focus. gm is a big investment for him,

and mike, argentina. interesting, yet another guy involved in herbalife. withle bass --kyle bass market-making use. >> and tom keene talking about when flights are leaving, i know he takes of the surveillance g- 5. i got it. understood. --thank you so much. our guest host on the volcker rule. 842 books out on the financial crisis and about four that through. one was josh rosner's "reiko -- "reckless endangerment." ?ave you read the volcker rule >> i will read up another current version yet. vote.th is the day of the

i think there will be a a lot of issues to play out on how you define what you are holding an inventory, how long you can hold it becomes a problem. >> that is josh rosner kind of jargon. when you say inventory, stuff on jamie dimon's books. youf you are market-making should hold inventory on behalf of your clients. if you are building large positions and you are not involved in the market-making and you continue to hold it for a period, and what point is it no longer inventory for market- making and is it actually -- >> do we know that? >> that will be the heart of the matter that we don't yet know. that is what is most interesting. up until now, in the current iteration, regulators have been incredibly tightlipped. very little information even going to the banks about what changes are taken after the comment period. what is very unusual that there on aeen this much silence roll of this import. >> why do you think it is? >> they do not want to leak. they did not want -- one of the

banks. >> doesn't mean there is a diminishing clout of the financial lobbyist? thatll, we won't know until we see the final rule. obviously the regulators are required to take into consideration the comments that come to them after a notice of proposed rulemaking. and they, i'm sure, did. the question is whether it is softer or higher and -- hard and we don't know. >> what is the chance the banks will find a workaround? >> on margins, banks always find a workaround. the issue is not whether they will on the margin but the issue is how significant it is. and the end of the day it will crimp their business. obviously it -- it will crimp goldman's and morgan's business more. and given the fact our largest banks have very little topline growth opportunity. >> you and gretchen mortenson wrote a book where the words came out of the book, it had so much energy. forget about the christmas parties. what is the mood at our major

banks? can they make money next year? and if they can't, the answer is, more layoffs. thethere 950 pages of volcker rule, 950 layoffs in america? meredith whitney has it right? disaggregating, do we start seeing the separation and the reversal of the 30 year trend from aggregation of -- >> to partnership -- >> to partnerships, spinning off and creating value by disaggregating. over time i think it will -- we will be seeing it. banks being forced out of commodities. that could change early next year when the fed considers whether or not to allow them in and pay a surcharge. but the top line opportunities are not there. if you are 1/7 the size of the u.s. economy without a lot of leverage it is hard to grow faster -- >> 950 pages with a lot of layoffs. i think there will be a lot of hiring an legal and compliance. >> i think they are already

there. but you have to give more people on board to interpret things like market-making. >> absolutely. >> shadow banking, which you cover so well in the book. new shadow banking? -- if you needh liquidity, the idea, does liquidity just move off the balance sheet to another bank? unfortunately that notion, we still have not seen a fixing of the shadow banking system that disappeared in the crisis. ,hird-party mortgage originator securitization, gone. >> we will continue this discussion. this important day for merrick and banking. >> our twitter question of the day -- what makes a car cool? the ceo of ford later on. ♪

x good morning, everyone. "bloomberg surveillance." i'm tom. this matters now to josh rosner. from the newgs shadow banking. can the too big to fail banks actually earn profits and boost returns on equity in 2014? you look at regulation. let's talk making money. how grim is it for major banks? >> unless they capture significant new markets at the top line growth will be difficult. the smallest banks, we are starting to see businesses borrow a little more. but for the biggest banks, that

activity is not really their insides. you've got markets they've got to capture. they are trying to take over what was being gse's business, the mortgage business from the gse's. we'll see legislation that essentially tries to him the charters of the gst's to the biggest banks. that will affect topline. is really where they are going. we are doing that before we actually fixing the shadow banking pieces that are missing. >> i spoke with john from wells fargo the other day. let me ask you -- is branch baking -- branch banking a dinosaur? >> they are dinosaurs but they are dinosaurs that will evolve into something. i think will end up with a different type of allegiance to our bank overtime as the bigger banks end up having to start disaggregating, focusing more on

niche businesses that are core. >> domestic? >> for the business -- biggest banks are going elsewhere. but we made it harder for them with a change in regulation in home host country rules, etc.. >> dumb question of the day. is there a volcker rule in europe? >> no, i don't think so. >> why not? a discussionere is of the -- obviously the u.s. is pushing for a homogeneous global approach, but there isn't really -- on their. doing?is citi he has been below the radar? executing they are quietly and executing well and i think they are one of a few that has recognized -- other than wells, which is monoline for all intents and purposes, releasing shareholder value does not necessarily mean growing but reducing yourself into the co--- core businesses. >> i had a "surveillance"

nightmare, the reading of the entire volcker rule. exley do this, they will actually be the entire document. note substitute for that. we are going to digress. how about this? color wars. pantone, they make all the colors. it is not a jewel tone. they will introduce it. ♪

>> good morning, everyone. i'm tom keene. scarlet fu and alix steel with me. josh rosner is here from graham fisher and his acclaimed book "reckless endangerment." times amid crisis, the venerable wall street firm, they were the bull in the china shop. the son of the man who actually implemented charlie merrill's

vision. five years on from the take out of merrill lynch by bank of america. book,ith, his fabulous "lightning in a bottle." there's passive investment in active investment. page 104, they had to train the damn bull to go through the china shop? >> they got props, then got him to go through a real china shop and it was that the list. >> the image about the delicacy needed in markets. today we have wealth management. boring. but not sound like your father or charlie merrill. this becomedoes after the energy of ef hutton and merrill lynch and others? >> i think they are calling it ever names but it really is the same thing. the first principle is you have to focus on the needs of the client and do what is right for the client and have integrity.

>> integrity is a two percent fee. john from rbc capital markets has been good about this, stewardship. how cutthroat is the brokerage big dance business now and will we lower the fees down to where we can't make money? fees.hink we are lowering look at merrill lynch. we are not dealing with a small investor anymore at merrill lynch. financial advisors are charging a fee. less than 100 basis points. management,account 55 or 70, no brokerage commissions and good solid advice. >> why has there been so much competition and john vogel think merrill lynch is his best friend. >> he has always thought that. >> but the raging debate of the broker versus advisor, instead of doing it myself, where does it stand going into next year? >> a good advisor makes the heck of a difference. most people don't have the skill, that time, or necessarily

the interest to manage their own money. there are some that do. that is terrific. and there are opportunities. but a good advisor could make a heck of a difference. side wee sell institutionalize the process quite a bit more than used to be. commissions being the game -- which gave the ability to retain the assets at the bank or investment bank rather than having them leave every time a broker walks out the door. and also improve returns and safety and soundness for the customer. >> exactly. ati wonder, when you look the bull market that we have now, it does not feel like the bull market of the past. because the retail investor, the individual must there is missing. glaringly absent. they feel like the game is rigged and it works again -- against them. i'm usually it is not the worst time they thought that way but it is different. >> i think we have a series problem. there is a parallel to win c merrill and my father got into business. same thing. people did not trust wall street. they thought only the fact cap

could make money. >> you don't mince words. catching lightning in the bottle -- stan o'neal, a smart man. he brought down a great firm. impossible him. what have you learned from your research that ugly day five years ago when merrill disappeared? >> it never should have happened, tom. what happened was the ceo lost sight of the principles -- >> elements were -- words, stando'neill. >> he did not understand history any maligned mother merrill and to me he cut too deeply after 2001. cut off a lot of the investment. and then had to jump into higher-level products to make money. and he brought the leverage to the firm almost 36 to 1, almost unconscionable. >> how much has to do with the fact that we watched the investment banks merge with the banks, we can go back and replay the whole glass-steagall, but how much is a change of culture?

you end up as partnerships going home with your risks managed in size every night -- >> quickly i'm a to this point, can we get back -- >> he makes a very good point. i saw something and others did, tooo. when wall street stopped talking about clients and customers and started talking about counterparties, there was a cultural shift. >> and the partnership. >> the partnership mode. until the early 1970s or actually the late 1950s, the new york stock exchange could not allow firms to become corporations. th, "how merrill lynch revolutionize the financial world." whatever you think, no question that is a true statement. >> kobe bryant has a signature shoe. elite nine, the ninth shoe released by the star. the challenge of balancing his game and brand. im, an executive

for my own brand of products. i have learned a great deal from that. is tough for athletes, though, because you hacksking to where two that contradict each other. from an athlete's perspective, you have to be passionate about your sport. you have to think team first and winning first. then when you put on your business hat, then you get the public backlash of being a businessperson. i thinkever reason, athletes have become a little reluctant to actually do business things and to make business decisions because of that. i think that is something that needs to change. >> part of that is also, what do you do after your sports game is over? you need to have some kind of plan b. >> definitely. they all have to come up with a plan b -- >> washed up -- >> the new york rangers goalie will be around a while. on.on -- come

somebody set the thank you outfield should be damon, elsberry -- >> healthcare.gov fixed? is that the case? ♪

>> this is "bloomberg surveillance." i'm scarlet fu with tom keene a guestlix steel and post is josh rosner from graham fisher. there is red and green on the screen. >> we are in 2014 mode and one big question you might not be thinking about but you may bet

j.crew is -- what will the color before 2014 and why should you care? we are joined by the executive director of the pantone color institute to unveil the pantone color of next year. drum roll, please. radiant orchid. we are bathed in the color of the year. how on earth did you come up with the color? what is the vetting process? >> it is a bit complicated. we have a lot of homework to do. at pantone we travel the world and look for all the clues out there. our color antenna are going all the time so we look at what we think is emerging in the markets and radiant orchid -- >> are you wearing radiant orchid? >> of course. but it is beautiful. >> growth, renewal, prosperity -- doesn't mean we are getting ready for a better economy?

>> ui describing the color this year, emerald. as you are describing the color of this year. dennotesrchid creativity, innovation, originality. >> of disruption? what it is doing is encouraging people to be more creative and inventive and today's society we are all striving. >> i have massive respect for what pantone does, over 2000 nuances in color. >> almost back to an adult industry. we were that with the jewel tones, remember the really ugly, ugly colors. how did we get back to adult colors? >> people are so much more educated now. much more information available. just on the pantone website

alone when we put up the colors of the season, we get so many hits. there are so many consumers today who are so much smarter than that used to be and they have the world wide range of what color is available to them, and they are making smarter choices. >> window apparel companies and football -- footwear companies rely on the colors and there is a lot at stake but what about businesses that engage in other businesses, industrial companies, what do they get from colors of the year? >> of course, from a consumer standpoint, if you know the color of the year and they put it out there in a concept car or coffeemakers, you are going to be able to see the color and it is going to register in your mind so you are going to be looking for the color. being more selective. >> enough of the purple. let's get back to our real set design. "surveillance" graphic. our director uses pantone to get the colors on our set. that joanrk city set

doesn't -- she has only one name -- when you look at color, it is critical, the nuances, isn't it? >> absolutely critical. when you see things that are pertaining to -- green should be used for such and such but red -- or read is used for such and such, it makes me a little crazy because at pantone we know there are no wanted and one color may not work for everyone. >> what role does it have for selling tronics, not clothes or something obvious? >> number one, it gets your attention. and number two, every color has an inherent meaning that some people are not overtly aware of but they know when they reach is for something, if it something that is going to be soft on the body, they want a color that depicts that. >> can we do three hours on this? >> what about a color where it does not sell something. the iphone 5c has a yellow phone

and it is not selling so well. >> i think what choices are made -- they make very, very distinctive choices for their intended consumer. i am sure there was someone in mind that they had for that yellow phone. >> did you advise facebook on their blue-collar? personally i think it is atrocious? ugly. >> after saying that, what i tell you? >> what do you think of facebook blue? itwhatever reason they chose for, i am not going to be judgmental. they chose it for a reason. educatedle make guesses -- most businesses should be making educated guesses. not saying they do. if they chose it but probably with a reason. >> did you have a crayola as a kid, the sharpener? >> certainly -- oregon and look forward to

seeing it in 2014. >> featured little changed as we head into a big day of economic data. jobless claims at 8:30 a.m. and an update on gdp and don't forget the bloomberg consumer comfort index and factory orders all due out later this morning. >> good morning, everyone. "bloomberg surveillance." on bloomberg television and radio and all of her and her views on bloomberg tv plus, on the ipad, bloomberg radio plus on itunes and android. i'm tom keene and scarlet phil and alex feel with me. ecb out in a number of minutes. guest host is our, joshua rosner , graham fisher. >> healthcare.gov -- politico reports around 20,000 -- 29,000 fined up sunday and monday, surpassing the total of the entire month of october. julianna goldman is our white house correspondent. is the white house taking a victory lap year? >> first of all, bloomberg is

reporting that also. we got the 29,000 numbers. we will bene way able to see if the white house is doing a victory lap is when they start putting obamacare in wild orchid colors to brand it. that is exactly what we are starting to see now. we are seeing the rebranding of obamacare. it seems like the white house and starting to feel comfortable with the user experience. there usingt out obamacare again instead of the affordable care act so he is putting his name back on it. they are getting democrats on board to go out and tell the positive elements of this along that they see. some of the more popular items like the president today will be talking about how the law prevents insurers from discriminating against people with existing conditions and female members of congress talking about are vanity fair

like mammograms. >> but there was a harvard study that got attention showing the nation's eu's is breaking with the president over health care. many of them don't want to sign up. is the white house ringing its hands on this new disclosure? >> that is a pretty significant poll. it said about 29% of the young uninsured are leaning towards signing up for health care and only about 41% are singing, so so, we are less enthused about signing up for it. they need to get the young invincible, the young uninsured fined up to balance out the insurance pool. that is why use all the president yesterday, he held what was called a youth summit at the white house trying to get young entrepreneurs, people with lots of twitter followers to get out and spread the word. disclosure, we would like you to know that julianna goldman is one of the young invincibles out there. how will the republicans react? will they go out and badmouth

the fact people can sign up? inthe republicans are sorted a bind now because they can no longer -- and all along what republican strategist have been saying is the whole repeal argument was not really going to last because what is apparent now is obama care, the affordable care act is here to stay. so they now need to offer some changes if that is the route they are going to take. but what they are really focusing now -- which is also a big problem -- iv bare the back end problem spirit on the front end, the user experience is working well but the information transmitted to the insurers is getting garbled or incomplete and that could prevent people from getting the insurance coverage come january 1. on a more serious moment, tragedy at the white house yesterday. a poor child was run over at the christmas party and the first lady came to the rescue. what was the reaction at the

white house to this atrocious act? wasn'tve to tell you, i houseing the white response to this crisis mode they are probably in. [laughter] >> were they in the basement bunker? >> i will be sure to find out and get the response. we will make sure that it is on the record. we will not let it be on background. they will have to put a name and a face. , she will be -- julianna goldman will be down at the younger at an important meeting. she has the natural touch, she rented a child right away. >> good news for the president. >> the president ended up leaking the information out because 29,000, it will not have been a victory lap four months ago but now it is a great incredible number. >> the question is will

this still be on the table in march with the midseason election question? >> a lot to resolve in washington. also coming up, ford has a new must end. will the new revamped model used the brand? >> ♪

>> tomorrow, jobs day, 8:30 a.m.

in the morning. onerage on bloomberg radio, bloomberg television. betty liu will go beneath the headline data at 8:30 a.m. tomorrow morning. this morning on "in the loop" you have something of going on. >> a slew of news. but i'm excited to see the new mustang coming out from fort. in brilliant orchid -- >> no, it is radiant orchid. is furtherht say it evidence that manufacturing in the united states is coming back. we will see more and more jobs. the gary shilling will be joining us and he says, forget that. that is all a bunch of baloney. any factoring jobs in the united states are not coming back. in thefacturing jobs united states are not coming back and what you see is a blip on the screen. like w, don't you? >> it is a rumor. -- you

reportedlysomebody the world -- >> very good. i am motivated. oh wait. is it too early? >> we have been up since 2:00. 5:00 p.m. in belgrade. it is perfect this morning. whiskey at 8:00 in the morning. >> china mobile clearing a key hurdle. it will spot -- start offering the iphone to subscribers. 759 million subscribers, the most in the world. an analyst who writes about apple spoke about the opportunity for capital -- for apple to "bloomberg west." >> yesterday we looked at the phones selling on china mobile. all of the smartphones. about 80 different models. a lot of options for people in china.

the average price is about $250. average price for iphone 5c in china not on china mobile is $750 starting price and 5s close to 900. because of that, the opportunity to water down. it is still a huge opportunity and can move the numbers, but that is why we expect the 10% market share versus 50 or 60 like in the u.s. >> gene munster. apple shares higher in the premarket. a lot of new surrounding the name. he willicahn tweeting make a nonbinding proposal to call for a vote to increase the buyback program but probably not as much as the $150 billion. cantor fitzgerald coming out ahn's i for saying ic value makes him an ideal activist investor to boost

valuation because the current is unfolding. -- the current is insulting. >> it takes eight quarters to be blue-chip stock and they are about a third of the way there. quarter after quarter, boost of cash along with revenue growth. one day they will join the dow jones industrial average. coming up, the new ford mustang, what it looks like. ♪

>> it is that time of month. the european central bank of breaking news. out with their announcement, unchanged. but that is not the real story. the story is 8:30 a.m. this morning new york time. comments from mario draghi. bloomberg chief economic correspondent michael mckee joins us. .ou and i will be live what will you look for from mr. draghi? >> people want to look at what he will say for the outlook for the future. the outlook for 2014, for the -- 2015me wendy projections for inflation. people want to guess whether

there will be an additional policy move. no surprise today they did not move because inflation went up last month a little bit. >> what is the relationship between mr. draghi and the friend that the bundesbank -- at the bundesbank in germany. how much does he care about it? >> he cares about a politically because he has to manage it but not overall. they are on their own target. they forecast inflation will gradually rise. it did rise last month. the question is, does it continue. a lot will be out of control with energy prices. >> we spend a lot of time talking about the fed tapering. what about the bank of england? they kept the asset purchase program unchanged. but the latest data showed the economy is gaining strength. evenday the government, more important than the bank of england decision, the government is raising its gdb target. by 2017. year, 2.7%

unemployment rate at a four-year low. the unknown -- the question is, will mark carney by the first movie raising rates rather than lowering rates? people tend to think it will be a while. their threshold is seven, and they think it would be the end of 2014 by the time they get there but their own forecast as much meeting inflation targets until 2017. have been mckee, you more optimistic talking about a better u.s. economy, better u.k. economy. sayingfrom citigroup europe is doing better but the "but" is inflation. how do they balance the need for growth with worries about too little inflation? >> an interesting question that has come up recently and another -- other fed officials saying, look, we know inflation is too low. a lot of that has to do with energy prices. we expect them to rise. our forecast is for them to rise.

do we put in a floor? they probably don't. it makes it a little more, located if they do. it is a fallback position. for draghi, it is a question of whether they cut rates further to respond to another drop in inflation. he does not have to worry about the smut -- this month. >> mike mckee. bloomberg surveillance worldwide on bloomberg radio here in a few hours and we will focus on this further. right now let's focus on company news. >> we go to china where china mobile moves a step closer to offering the iphone. the world's biggest phone company won state approval for the 4g network license. it clears a key hurdle for china mobile to begin offering the iphone in china. microsoft beefing up privacy and online communications. the company is expanding data encryption to protect customer information following reports of u.s. government snooping. microsoft wants to make sure governments use legal means as opposed to brute force to access the customer data.

a crowded field bidding in the next airwaves auction. 33 applicant could join dish network won the bidding begins january 20 second. sprint and t-mobile are not bidding on the airwaves known as block but investor mario cavalli and other phone companies have applied. april 17, 19 64. my world changed. all of america's world change. 445 pounds, it was the ford mustang. changed america's perception and the world's perception of what coleman. a half-century on, ford motor of the board will attempt -- of dearborn will attempt to capture lightning in a bottle one more time. inat in my fathers mustang 1964 and i was beyond cool,

pretending i was driving in my garage. >> the most important american car since the model t, arguably. it changed everything for american car makers and really carmakers in general because it is the first time -- it could be your first car, also your coolest car. it was affordable and also super sporty and so many people bought them. over a million people bought them the first two years. >> to set up the drama now, what is the cool this morning -- at this moment in the american pony cars? >> this is the first american rail pony car in a long time. all of these pony cars that imitated the mustang, like the camaro and dodge challenger, have become muscle cars. they are big and strong. this one kind of goes a little bit back to the pony car routes. one thing most people are talking about is the 2.3 liter four-cylinder engine, normally sy and musclehere

car talk. you can get the five liter ford is famous for, but it is a pony car. dearborn,to us from ford motor chief operating officer mark fields. -- coming to us from dearborn. is this a muscle car or a pony car? >> the answer is yes. [laughter] >> you went to the school of alan mulally, i see. what do you want to accomplish with this truly exciting announcement? what is your goal with the mustang? >> a very exciting day for everybody at ford and also anybody who has ever fallen in love and admired a mustang over the years. an all-new mustang. i think what it really does is it represents the heart and soul of the company, and the company at its best and how we infuse that in a lot of our vehicles. it is a really big eight. 50th anniversary. it could be -- we could not be more happy presenting it. >> how will you sell this beast

to china? the difference is marketing it to kansas rather than shanghai? much the same. the mustang has universal appeal. to put it in perspective, the millionhas over 5.5 followers or fans on facebook and over half of them are outside the u.s., literally the four corners of the globe. and it is universal appeal. it ignited that sense of freedom and optimism. very consistent. it transcends genders, and it transcends them a graphics and nations. >> i wonder about the changes made -- it will mean nothing to most people but everything to some people, and that is the independent rear suspension. the first thing that i would say bothered me a little bit. i like the flagpole live rear axle the lack what are you talking about? the laststang was

reels ports card to use a rear suspension that connected the two wheels literally with one rod. fans loved this. it to go tord was the independent rear suspension? was it more for the international market? --onputting liquid cooled a harley. unheard of. >> what we were focusing on at the end of the day, the vehicle drove like a mustang. when you see the new mustang with the new suspension, you will get it and it will drive like a mustang and even better. tohink it will appeal mustang enthusiasts like yourself who has driven the vehicle over 50 years and all the new customers coming into drive it. us.arket, stay with what is the difference between a camaro and this new mustang? >> honestly the camaro really had overtaken the mustang and market share. it imitated the car originally in the 1960s and had become the

chart -- car of choice. >> that is the key distinction. general motors is doing imitation. what is ford motor company doing? >> we are being authentic onto ourselves and our customers. that is what as a brand, an authentic brand does. we know what our roots are. we build on them. we make sure they are interpreted in a modern way. we don't want to go out and be a copy of anyone else. we want to be original. it drives us what the mustang, the fusion, our entire lineup. >> when i think about what you and alan have done their, -- i thinkhe second thing about his ego boost. four-cylinder engine. how much power is this going to make? >> we will talk about powerspecs as we get closer to launch but we set aggressive targets. when you get in that vehicle and you drive that eco boost and

four-cylinder you will think you are in a v6 or a v-8 and you will get the power and fuel efficiency. >> i did not have time if he was driving a red -- >> more "bloomberg surveillance" coming up next -- ♪

is inna connects -- apple stores with a deal with the largest carrier as carl icahn renews his push for a stock buyback.

mexico is putting its money where its mouth is, literally. we have the skinny on the that taxto fight ability -- fat to fight obesity. through whiskey as the holidays approach. >> from bloomberg world headquarters in new york, this is "in the loop" with betty liu. >> good morning. it is thursday, december 5. ."u are "in the loop i am betty liu. we have the breakdown of china to offeringe closer the iphone as we get closer to the four g network in china. it is a big moment for china mobile and apple. another big moment for ford. matt miller has details on the 50th anniversary of the mustang and how alan